Gold Falls as Israel-Iran Ceasefire Lifts Risk Appetite, Powell Testimony in Focus

Gold Price Falls Below 50-Day SMA on Ceasefire and Powell Focus

Gold (XAU/USD) extended its decline on Tuesday, slipping toward the 50-day simple moving average (SMA), as investor appetite for risk improved following the announcement of a ceasefire between Israel and Iran. This shift in sentiment also came ahead of a key testimony from Federal Reserve Chair Jerome Powell, drawing attention to the central bank’s next policy steps.

Ceasefire Cools Geopolitical Tensions

US President Donald Trump declared on Truth Social that a ceasefire is now in effect between Iran and Israel, prompting a global shift away from safe-haven assets like Gold. “PLEASE DO NOT VIOLATE IT,” Trump wrote, urging both parties to maintain peace.

However, tensions remain fragile. Israeli Defense Minister Israel Katz authorized retaliatory action after accusing Iran of violating the truce—allegations that Tehran has denied.

Markets Shift Focus to Powell and Rate Cut Clues

With the Middle East conflict de-escalating for now, the market's focus pivots to Powell’s semi-annual testimony to Congress starting at 14:00 GMT. Investors will seek insights into the Fed’s inflation outlook and the timing of interest rate cuts, potentially in July or September.

Analysts expect Powell to adopt a cautious tone, emphasizing data dependence as inflation moderates and labor markets remain under scrutiny.

Key Levels to Watch

• Support: $3,300 / 50-day SMA
• Resistance: $3,360
• Macro Events: Powell’s Congressional testimony, US inflation data later this week

Related Articles on Tredu.com:

• US Dollar Index Falls Below 97.80 Ahead of Powell Testimony
• Gold Price Forecast: Risk Appetite Trims Gains on Ceasefire Hopes
• Oil Prices Slip on Reduced Geopolitical Risk